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2024 Supreme(Raj) 800

IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
NUPUR BHATI, J.
United India Insurance Company Limited – Appellant
Versus
Bharti W/o Late Pukhraj – Respondent
S.B. Civil Misc. Appeal No. 2246 of 2019
Decided on : 03-09-2024

Advocates:
Advocate Appeared:
For the Appellant : Mr. Anil Kaushik.
For the Respondent: Mr. Bharat Singh.

IMPORTANT POINT
Compensation in motor vehicle accident cases must be substantiated by evidence, and established guidelines should be followed for calculating loss of income and damages.

Headnote:

Compensation - Motor Vehicle Accident - M.V. Act, 1988 - Sections 140, 166 - The court analyzed the compensation awarded under the M.V. Act, emphasizing the need for evidence in income claims and applying established guidelines for calculating loss of income and other damages.

Fact of the Case:

The claimants sought compensation for the death of their breadwinner in a motorcycle accident caused by another rider's negligence. The Tribunal awarded Rs.14,04,000, which the insurance company contested, claiming the deceased was negligent and the compensation excessive.

Finding of the Court:

The court found the claimants failed to prove the deceased's income of Rs.6000/month, determining it to be Rs.5382 instead. It modified the compensation awarded by the Tribunal, reducing it to Rs.12,93,198.

Issues: Whether the compensation awarded by the Tribunal was excessive and whether the deceased's income was correctly assessed.

Ratio Decidendi: The court held that compensation must be based on substantiated evidence of income and applied the multiplier method for calculating loss of income, adjusting for personal expenses and future prospects.

Result: The appeal was partly allowed, reducing the compensation to Rs.12,93,198.

JUDGMENT :

1. The appellant/non-claimant No.3 has filed by the instant appeal under Section 173 of the M.V. Act, 1988, challenging the validity of the judgment and award dated 03.04.2019 passed by learned Judge, Motor Accident Claims Tribunal, Pali (‘Tribunal’) in MAC Case No.109/2018, whereby the learned Tribunal has awarded compensation in favour of claimants to tune of Rs.14,04,000/- along with interest @ 9% p.a. from the date of filing the claim petition on account of death of Sh. Pukhraj.

2. Briefly stated, the facts of the case are that claimants filed a claim petition under Section 140/166 of the M.V. Act, 1988 before the learned Tribunal claiming compensation on account of untimely death of their breadwinner late Sh. Pukhraj. In the claim petition it was stated by the claimants that on 19.11.2017, while deceased was riding on Motorcycle No.RJ-22-AS-9603 from Sanwata Khurd to Sanwanta Kallan, in the meanwhile another Motorcycle (RJ-22-AS-6018), which was plied by its rider in wrong side, hit the motorcycle of Pukhraj. As a result of which, Pukhraj sustained head injury and he died during treatment on 25.11.2017. At the time of accident, the deceased was 39 years of age and thus the claimants filed claim petition claiming compensation of Rs.1,30,86,000/-.

3. The non-claimants were summoned. After service of the summons, the non-claimants No.1 and 2 filed their reply to claim petition while contesting the claim petition. On behalf of non-claimant No.3 i.e. insurance company, reply to claim petition was filed while denying the averments therein for want of knowledge. It was stated in the reply that the deceased was plying the motorcycle negligently and the accident occurred due to his own negligence. It was further stated by the non-claimant No.3 that rider of the offending motorcycle was also not having valid and effective licence and thus on account of violation of conditions of the policy, the liability of paying compensation could not have been fastened upon the insurance company. It was further stated that the claimants have claimed excess amount of compensation and prayed for dismissal of the claim petition.

4. As per the pleadings of the parties, the learned Tribunal framed four issues, including relief. In support of their claim, the claimants examined two witnesses, viz. AW.1 Smt. Bharti and AW.2 Somaram. In documentary evidence, the claimants exhibited 16 documents. On behalf of non-claimants, no evidence was led.

5. The learned Tribunal, after hearing the arguments of the parties and perusing the material placed before, it vide judgment and award dated 03.04.2019 proceeded to partly allowed claim petition and awarded compensation of Rs.14,04,000/- along with interest @ 9% per annum from the date of filing of claim petition while holding all the non-claimants jointly and severally liable to pay the aforesaid compensation.

6. Learned counsel appearing for the appellant insurance company submits that the learned Tribunal has erred assessing the monthly income of the deceased at Rs.6000/-, inasmuch as no documentary evidence was produced by the claimants. Learned counsel for the appellant insurance company submits that the learned Tribunal ought to have considered the monthly wages at Rs.5382/-. Learned counsel for the appellant further submits that the compensation awarded by the learned Tribunal qua non-pecuniary loss is also on higher side and the same also deserves to be awarded in view of Guidelines laid down by the Rajasthan State Legal Services Authority and in view of judgment passed by Hon’ble Court in the case of National Insurance Co. Ltd v. Pranay Sethi : 2017 (16) SCC 680.

7. On the other hand, learned counsel appearing for claimants opposes the submissions made by counsel for the insurance company and submits that the compensation awarded by the learned Tribunal is adequate

8. While admitting the instant appeal, a Coordinate Bench of this Court vide order dated 02.09.2019 directed the appellant insurance compa

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